Housing Demand in Waterloo Region to Pick Up in 2013

KITCHENER, ONTARIO--(Marketwire - Nov. 22, 2012) - Housing demand in the Waterloo Region Census Metropolitan Area (CMA) will pick up in 2013 as U.S. economic growth supports local employment, according to Erica McLerie, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Waterloo Region. CMHC presented its latest forecast for the Waterloo Region CMA today at the annual CMHC Housing Outlook Seminar.

This year's seminar, entitled, 'How Does Waterloo Region Measure Up?' had market analysts use local data to answer questions that housing-industry professionals hear every day - addressing Waterloo Region residents' housing-related concerns.

"After an unusually strong first quarter this year, housing markets over the course of 2012 have stabilized at a lower level," said Erica McLerie. "Both the new home and resale markets will regain momentum in 2013 as the U.S. economy strengthens, and longer term demographics will support housing demand."

Highlights from today's seminar include:

• Existing home sales will slow in the latter part of 2012, but gain momentum in the second half of 2013 as employment conditions improve.
• Resale prices will remain relatively flat through 2013 as the market continues to be balanced.
• Housing starts in 2013 will move up from the end of 2012.
• Low mortgage rates and household growth will support demand.
• A higher concentration on manufacturing, as compared to other major southwestern Ontario centres, will be an advantage for Waterloo Region in 2013.

"Larger urban Ontario centres have been capturing a growing share of housing activity in recent years. A gradual shift in housing activity is expected as smaller urban housing markets hold up relatively better in 2013," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Housing markets in Windsor, Thunder Bay, Sudbury and London will outperform thanks to an ongoing U.S. economic recovery, relatively more affordable housing and residential construction that is better in line with household formation."

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.